USMCA Preference Criteria: A, B, C, D Explained
Understand USMCA preference criteria A, B, C, and D. Learn which criterion applies to your products and how to correctly certify origin for duty-free treatment.
Overview of Preference Criteria
USMCA uses four preference criteria (A, B, C, D) to classify HOW a product qualifies as originating.
The criterion you select on your certificate of origin tells customs:
Selecting the wrong criterion can invalidate your certificate, so understanding each is critical.
Criterion A: Wholly Obtained or Produced
Use Criterion A when the product is entirely from the USMCA region with no foreign inputs.
Examples:
Key requirement: No non-originating materials whatsoever.
Documentation needed:
Criterion A is most common for raw materials and unprocessed agricultural goods.
Criterion B: Produced from Originating Materials
Use Criterion B when your product is manufactured in a USMCA country using ONLY originating materials.
How it works:
Example:
A furniture manufacturer in Mexico uses only US lumber and Canadian hardware (both originating) to produce chairs. All materials are already USMCA-originating, so Criterion B applies.
Documentation needed:
Criterion B is less common because most manufactured goods have some non-originating inputs.
Criterion C: Tariff Shift Rule
Use Criterion C when non-originating materials undergo a required change in tariff classification.
How it works:
Types of tariff shifts:
Example:
Cotton fabric (HS 5208) is made into shirts (HS 6105) in Mexico. The rule requires CTH (4-digit change). Since 5208→6105 is a 4-digit change, the tariff shift is satisfied.
Documentation needed:
Criterion D: Regional Value Content
Use Criterion D when the product qualifies primarily through meeting the RVC threshold (not tariff shift).
How it works:
When Criterion D applies:
Example:
An electronics assembly in Mexico has 68% regional value content. The rule allows either tariff shift OR 65% RVC. Rather than proving tariff shifts for all components, Criterion D can be used since 68% > 65%.
Documentation needed:
Criterion D is common for manufactured goods with mixed-origin components.
How to Choose the Right Criterion
Follow this decision tree:
Step 1: Is your product wholly obtained in the region?
Step 2: Are ALL materials originating?
Step 3: Check product-specific rule in Annex 4-B
Pro tip: Our platform automatically determines the correct criterion based on your product data and origin information.
Related Industry Guides
See how these tariff rules apply to specific industries:
Frequently Asked Questions
Q: Can I use different criteria for the same product?
You must use ONE criterion per product on each certificate. However, if product-specific rules allow multiple paths to qualification, you can choose whichever works best.
Q: What if I'm not sure which criterion applies?
Check the product-specific rules in USMCA Annex 4-B for your HS code. The rule will specify whether tariff shift, RVC, or both are required. Our platform does this lookup automatically.
Q: Does the criterion affect the tariff rate?
No, all qualifying products receive the same preferential (typically duty-free) treatment regardless of which criterion is used. The criterion just documents HOW the product qualifies.